2439EconomicsMedium
X inefficiency occurs when?
AThere are external cost
BThe price is greater than the average cost
CCosts are higher than they could be due to a lack of competitive pressure
DThe price is greater than the marginal cost
Correct answer
C. Costs are higher than they could be due to a lack of competitive pressure
Explanation
The correct answer is Costs are higher than they could be due to a lack of competitive pressure.